Institutions along with state or government who hold considerable shares inContainer Corporation of India Limited (NSE:CONCOR) come under pressure; lose 8.4% of holdings value

Key Insights

• Significant control over Container Corporation of India by state or government implies that the general public has more power to influence management and governance-related decisions
• Indian Railways owns 55% of the company
• 32% of Container Corporation of India is held by Institutions

Every investor in Container Corporation of India Limited (NSE:CONCOR) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are state or government with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 8.4% decrease in the stock price last week, state or government suffered the most losses, but institutions who own 32% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Container Corporation of India.

View our latest analysis for Container Corporation of India

What Does The Institutional Ownership Tell Us About Container Corporation of India?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Container Corporation of India does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Container Corporation of India, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Container Corporation of India. Indian Railways is currently the company's largest shareholder with 55% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Life Insurance Corporation of India, Asset Management Arm is the second largest shareholder owning 5.8% of common stock, and Kotak Mahindra Asset Management Company Limited holds about 2.4% of the company stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Container Corporation of India

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that Container Corporation of India Limited insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₹546k worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Container Corporation of India. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Container Corporation of India better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Container Corporation of India , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.